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MPF: how to boost returns?

  1. #41

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    Feb 2011
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    Would it be silly to just stick all my MPF in the DIS fund?

    I found the Manulife fund fees here and there are two listed fees. One fee and another maximum level fee? Confusing.

    Anyone care to explain pages 34-49 and why there are two percentages for each fund?

    http://www.mpfa.org.hk/eng/public_re..._Scheme_EN.pdf

    Last edited by periphery831; 17-03-2019 at 04:27 AM.

  2. #42

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    Feb 2011
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    No matter, I found an updated version which explains Manulife's fees in detail.

    The fees aren't as bad as I thought but still not sure if I should just stick everything in DIS?

    https://www.manulife.com.hk/wps/wcm/connect/pws/439ffa78-397d-4a7c-acdd-070411310ecc/Privileged+Rates+Program_eng_201604.pdf?MOD=AJPERE S


  3. #43

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    Quote Originally Posted by periphery831
    No matter, I found an updated version which explains Manulife's fees in detail.

    The fees aren't as bad as I thought but still not sure if I should just stick everything in DIS?

    https://www.manulife.com.hk/wps/wcm/connect/pws/439ffa78-397d-4a7c-acdd-070411310ecc/Privileged+Rates+Program_eng_201604.pdf?MOD=AJPERE S
    Thanka for that.

    I have just stuck all my money in DIS on the basis that it supposed to provide a balanced portfolio at the lowest fees. The Manulife DIS is administered by Vanguard btw.

    Even at 0.75, the fees are criminally high, but I have no choice with MPF so I would rather invest in a fund with the lowest fees.

    At the end its your decision and you have to do your own research.
    periphery831 likes this.

  4. #44

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    Nov 2005
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    Quote Originally Posted by pin
    OSRO or something like that?
    when i signed up for it i thought it was osro. but osro also administered by the bank and the banks charge you based on their fee schedule.

    this one our company has is run inhouse when we appoint the trustee to hold the assets, otherwise investment is done on funds selected and specifically negotiated with the fund managers.. number of funds are kept decent, maybe just 10 of them, and as the asset size is reasonable they probably go into the institutional classes to get such low fees.

    maybe i will check with the secretary to see how they do it..
    but unfortunately for the rest of the market this is just an academic study.. can't offer this to you guys.
    shri likes this.

  5. #45

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    It’s ORSO guys...


  6. #46

    Join Date
    Nov 2018
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    Wow, 0.75% annual fees even for the Money Market fund!? The Monthly Declared Interest Rate is 0.50%, so I'm actually paying them to hold my MPF?


  7. #47

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    Quote Originally Posted by ChuckFan
    Wow, 0.75% annual fees even for the Money Market fund!? The Monthly Declared Interest Rate is 0.50%, so I'm actually paying them to hold my MPF?
    Ridiculous, right. The Manulife MPF Hang Seng Index Tracking Fund (the "MGHS") has fees of 0.90%. This is what the MGHS does:

    "The MGHS is a unitised equity fund that aims to provide medium to long term capital growth. The
    underlying investments are in shares of constituent companies of the Hang Seng Index in substantially
    similar composition and weighting as they appear in the index through an approved index-tracking
    collective investment scheme ("ITCIS") (currently, the Tracker Fund of Hong Kong managed by State
    Street Global Advisors Asia Limited). The MGHS seeks to track the performance of the Hang Seng
    Index of Hong Kong."

    It doesn't even do its own research, it just borrows and copies 2800.HK and then whacks on a management fee of 0.90%!!! And this is supposed to be a passive fund!!
    Last edited by pin; Yesterday at 01:48 PM.

  8. #48

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    Quote Originally Posted by ChuckFan
    Wow, 0.75% annual fees even for the Money Market fund!? The Monthly Declared Interest Rate is 0.50%, so I'm actually paying them to hold my MPF?
    I would phrase this differently: you pay them to lose you money.

  9. #49

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    Feb 2006
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    733
    Quote Originally Posted by pin
    Thanka for that.

    I have just stuck all my money in DIS on the basis that it supposed to provide a balanced portfolio at the lowest fees. The Manulife DIS is administered by Vanguard btw.

    Even at 0.75, the fees are criminally high, but I have no choice with MPF so I would rather invest in a fund with the lowest fees.

    At the end its your decision and you have to do your own research.
    I've done the same thing. It's also the cheapest way to invest in a balanced fund that I found in HK. Based on the research of how rare it is for active managers to outperform stock indices over long time periods, I figure I can't be worse off than any retail funds I buy out there.

    Flagging in case not everyone is aware - the biggest bite in MPF fees come from the admin/operation costs. Really wish govt would just centralize all that under a non profit structure or have the Treasury run it.

    (Yes, I realize constructing my own portfolio via individual holdings or ETFs would be cheaper but (a) I respect the limits of my ignorance on individual securities and (b) company compliance rules make it hard to trade anything other than 2800 or a couple of the biggest China ETFs.)

  10. #50

    Join Date
    Feb 2011
    Posts
    250

    I've just stuck all my MPF into the DIS too. It can't be much worse or better than what's around and you get fewer fees.


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